What is a gift letter and what does it need to say?

A gift letter is a signed statement from whoever is giving you down-payment money confirming the funds are a gift with no expectation of repayment, which your lender requires before counting it toward your loan. It needs the donor's name, relationship to you, the dollar amount, the date, the property address, and a statement that no repayment is expected, plus the donor's signature. Lenders often also want to see the money move from the donor's account to yours with a matching paper trail. Joel Boss can point you to the exact template your lender wants.